Real estate, once considered an alternative asset class, has become more mainstream in recent years. Investors are increasingly drawn to real estate given its stability in the face of otherwise dramatic market swings. Passive real estate investing also offers tremendous tax benefits, something that institutional investors have known all along. In this article, we look at the six primary tax benefits of passive real estate investing in multifamily properties ...
Continue reading this postWith so many investors drawn to multifamily investing, competition for properties is higher than ever. Class A multifamily tends to attract the most interest from institutional buyers given that it is expensive but relatively low-risk. Class A properties, given their low-risk profile, tend to provide lower returns. Investors seeking more value are increasingly drawn to Class B and Class C value-add opportunities, where risk is somewhat higher but accordingly, the...
Continue reading this postPassive real estate investing is a great way for people to diversify their investment and retirement portfolios away from traditional holdings like stocks and bonds. But when someone decides to begin investing in multifamily properties, they aren’t always sure where to begin. Multifamily investing is a great way to get started given its simplicity compared to other real estate asset classes. Investing in multifamily properties is a lot less complicated...
Continue reading this postThe term “syndication” makes the term “real estate syndication” seem more complicated than it really is. Think of it like buying an airline ticket. Anyone who has purchased an airline ticket has participated in syndication. Each ticket sold goes toward funding the flight. Some people might pay more or less than others for their tickets. Some people might buy more than one ticket. Yet collectively, the proceeds from the ticket...
Continue reading this postThe idea of earning more and working less is appealing. Identifying the right passive investing in a real estate income strategy can produce an exit strategy from your current job, improve cash flow in retirement, or allow you to retire early. The catch is how do you produce reliable passive income without taking on high levels of risk? What is Passive Income? Passive income is money received, which is not...
Continue reading this postReal estate is a popular investment choice because it can offer a stable asset that produces an immediate cash flow. You can leverage the capital investment to build wealth faster and gain the opportunity to produce reliable passive income for real estate investor. However, it can also be a full-time job for real estate investors who wants to fix and flip homes or those with large portfolios, who choose to...
Continue reading this postReal estate commonly tops passive investment lists, which can be both misleading and deceiving. Not all real estate deals create a passive income, and not all property offers low-risk gains. Passive investing conjures up imagines of a “set it and forget it” investment strategy. You choose an investment vehicle and let it ride. In return, you receive consistent gains with no more work than a crockpot meal. The challenge is...
Continue reading this postAn REIT, or Real Estate Investment Trust, is a company that facilitates investment in income-producing real estate. REITs are an industry-standard investing in real estate channels and must meet certain guidelines to operate as a REIT. Because of the offered stability, a track record of high payouts, and potential for growth associated with REITs, they are one of the most popular classes of stock today. REITs operate by the pooling...
Continue reading this postLeverage is one of the key factors that makes real estate investing an appealing option for many investors. Leverage, simply put, is defined as using borrowed capital debt or equity) to purchase an investment. When properly executed, leverage will increase the potential return on your investment. Unfortunately, there are many risks associated with leverage, many of which are common pitfalls that investors make that lead to a serious loss in equity. Understanding these...
Continue reading this postOne of the greatest advantages of investing in real estate is depreciation, as many investors know. Along with other deductions such as insurance, property tax, and maintenance, depreciation can greatly lower your federal taxable income taxes. But how does depreciation really work? When to Use Depreciation Depreciation allows you to spread the initial price of a rental property - excluding the land - over time. As an investor, you can...
Continue reading this post